Bitcoin (BTC) had a target of $24,000 on July 20 after a night of strong gains that put the bulls in the driving seat.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Data from Cointelegraph Markets Pro and TradingView followed as BTC/USD crossed $23,800, the highest level since June 13.
Contrary to expectations, crypto made a rebound after an hourly “fake” period as risk assets benefited from lower US dollar strength.
The inverse correlation between the US Dollar Index (DXY) and Bitcoin remained in center stage today, with the dollar retreating from its twenty-year highs at the end of the previous week.
US Dollar Index (DXY) vs BTC/USD 1 day candle chart. Source: TradingView
“The dollar took a good hit today from the bears,” popular Crypto trader Tony told Twitter followers as the hack took shape.
“Good sign for Bitcoin as things calm down for DXY.”
Meanwhile, fellow analyst Wolf looks at the collapse of the “parabolic trend” in DXY throughout 2022. Meanwhile, according to an analysis from popular trader Jibon, BTC/USD has ended its parabolic trajectory to macro lows.
These “forecasts” refer to a strategy that expects the BTC/USD pair to rise to $40K before setting another bearish phase to a new overall bottom.
Major trend lines are experiencing a sudden test
Coming back to the current price action, in the meantime, the importance came in the form of breaking crucial trend lines.
Related: 100X Bitcoin’s Power Usage Mean “Riddy” Price of 20 Million BTC – Developer
Among them are the 200-week moving average (WMA) at $22,800 and the realized price of bitcoin at $21,934 as of July 19, as confirmed by on-chain analytics firm Glassnode.
Check bitcoin price chart. Source: Glassnode
Both are classic Bitcoin bear market formations, with BTC/USD usually falling while maintaining levels as primary support.
Thus, attention is focused on the weekly close, which will confirm the breakout from the 200 WMA.
The opinions and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.